Is K.P. Energy overvalued or undervalued?

As of 8 August 2025, K.P. Energy's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 24.05, an EV to EBITDA of 15.57, and a PEG ratio of 0.24, suggesting strong growth potential relative to its price.
When compared to peers, K.P. Energy's valuation stands out against Rail Vikas, which is considered expensive with a PE ratio of 54.8, and Craftsman Auto, also fair, with a PE ratio of 67.46. Notably, K.P. Energy's return on equity (ROE) is impressive at 36.83%, reinforcing its operational efficiency. Recent stock performance has shown a decline compared to the Sensex, with a year-to-date return of -17.46% versus the Sensex's 2.20%, yet its long-term performance remains robust with a 3-year return of 877.65%.